The growth and development of economic in Indonesia are not only from big cimpanies or multinationa, but the small business, micro business, and middle business have main problems in financial. To solve the problems, Baitul Maal Wat Tamwil (BMT) comes to give the finance to the micro businessmen easily. The aim of this research was to khow the role of finance given by Baitul Maal Wat Tamwil towards the perception of business development and the welfare improving for the members of Baitul Maal Wat Tamwil (BMT) from micro sector. The objects of the researches were the members of Baitul Maal Wat Tamwil (BMT) finance whose jobs were sellers in traditional market in Bantul. The samples of this research were as many as 119. The data used for the research were primary data by distributing questionnaires. The data analysis used Structural Equation Modelling (SEM). The result showed that te BMT finance was not significant towards the perception of business development and the welfare improving. However, the business growth was significant towards the perception of the wefare improving of the members.